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Jamie Dimon Sees 'Decent Growth' This Year as Market Plunge Unwarranted

(Dollar Photo Club)

By    |   Tuesday, 08 January 2019 10:09 AM

JPMorgan Chase Chairman and CEO Jamie Dimon sees “decent growth” this year and said the recent stock-market plunge was just an overreaction.

"I think markets are overreacting to short-term sentiment around a whole bunch of complex issues," Dimon told Fox Business Network.

He interpreted the market moves as a "rational response" to slower growth and the U.S.-China trade dispute.

"My view is that the consumer is in good shape and is continuing to grow, and they have backwinds with jobs and wages going up," Dimon said, adding that consumers were paying back credit-card debts.

"I think you're going to have decent growth in 2019 in America," Dimon said. "Therefore sentiment might reverse course at some point in the future."

Dimon told Fox that partisan politics is what’s preventing America from further economic growth and reaching its full potential.

“My bigger complaint is that America, maybe because of partisan politics, has been unable to do a lot of things that need to be done,” Dimon said in an exclusive interview with Maria Bartiromo on Monday.

Dimon, who noted the Trump administration’s tax cuts and regulatory reform as legislative victories, warned that America’s own bad policy is the reason why the U.S. economy is at 2 percent growth rate, Fox Business Network explained.

“We put a man on the moon in 8 years, it takes 12 years to get a permit to build a bridge,” he said. “Our inner city schools are not graduating people, we don't have enough apprenticeship programs, we don't have a trade deal, we don't have an immigration deal, and these things are holding back our country,” he said.

“All of the business people I know say it’s got to be fixed. I think we generally have the support of Japan and Europe in fixing that so we need to do this,” Dimon said.

The U.S. economy slowed in the third quarter a bit more than previously estimated, but the pace was likely strong enough to keep growth on track to hit the Trump administration’s 3 percent target this year, even as momentum appears to have moderated further early in the fourth quarter, Reuters reported.

Gross domestic product increased at a 3.4 percent annualized rate, the Commerce Department said on Friday in its third reading of third-quarter GDP growth. That was slightly down from the 3.5 percent pace estimated in October and well above the economy’s growth potential, which economists estimate to be about 2 percent.

The revisions to the third-quarter GDP reading reflected markdowns to consumer spending and exports. Inventory accumulation was, however, much bigger than previously estimated. There were downward revisions to business spending on equipment and nonresidential structures, as well as residential investment.

The economy grew at a 4.2 percent pace in the April-June quarter.

Meanwhile, a recent report from Ball State University warns that U.S. economic growth will slow this year amid a trio of factors.

The combined effects of 2018 Tax Cuts and Jobs Act (TCJA), current monetary policy, and a widening trade war will reduce the pace of nation’s economic growth in 2019, the new report from Ball State University said.

“While we expect the pace of U.S. GDP growth to be at or near 3 percent in 2018, we anticipate it slowing to 2.3 percent in 2019,” said Michael Hicks, director of Ball State’s Center for Business and Economic Research and an economics professor.

He also said the national economy is in its ninth year of expansion, with labor markets performing strongly, the unemployment rate is now beneath all common estimates of full employment, and wages have growth over the year of nearly 1.0 percent above the traditional consumer measures.

GDP growth in 2018 was stronger than in 2017, but not historically unusual, even for this relatively slow recovery. Promoting growth in 2018 was the Tax Cuts and Jobs Act, which motivated higher consumer spending, Hick said.

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JPMorgan Chase Chairman and CEO Jamie Dimon sees “decent growth” this year and said the recent stock-market plunge was just an overreaction.
jamie dimon, decent, growth, market, plunge
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2019-09-08
Tuesday, 08 January 2019 10:09 AM
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